Reaffirmation with a credit union, help with forms

[drock1985]

So I am going over my reaffirmation agreement sent to me by my credit union for my vehicle, I'm filing pro se, and I have questions about the forms.

1. The loan is with a credit union, and my income is way less than expenses. I wish to keep the car because I have a good amount of positive equity and only have 2 pymts to make before it's paid off. On form B240A, I'm still not sure whether to check "Presumption of undue hardship" or not because from what I've read, if you sign a reaffirmation agreement with a credit union, the presumption of undue hardship is "inapplicable" and the agreement gets accepted by the court whether or not there is a presumption of undue hardship. I just don't know if this means you check yes or no at the top for presumption of undue hardship. Also, i've read that you don't have to provide an explanation of how you can afford the payments in case of undue hardship if your agreement is with a credit union. Yet, it states that you must check "presumption of undue hardship" if your income is less than monthly expenses.

So, do I check yes or no on presumption of undue hardship at the top of the form?

And, what do I fill out for section C. (2) when it asks me to explain why the agreement will not impose an undue hardship? Just leave it blank because supposedly the law states I'm not required to provide an explanation?

Will I still have to file a motion for a reaffirmation hearing with the judge if supposedly it gets accepted no matter what when the creditor is a credit union?


I have a sneaking suspicion that I still check yes at the top for presumption of undue hardship, yet I do not provide any explanation as to why I can still afford the payments, and the agreement will still be entered and accepted by the court. What do you guys think?

[tcreegan]

Hi drock1985,

...only 2 more payments? I think you are going through a lot more trouble than necessary. Did you talk to the credit union and explain that you only have 2 payments, and that a reaffirmation wastes more time than it is worth?

Credit unions do have a very nice clause on reaffirmations in a BK. The credit union can approve a reaffirmation w/o your attorney or the BK judge. I would take the paperwork down to the CU and fill it out all out with someone there... they are the ones you have to keep happy.

Good luck w. it, let us know how it turns out!

Tom in Colo

[drock1985]

thanks for the feedback, but I really just need help w what to do on these forms, I need to deduct the just under 1k left to pay so I can use more of my wildcard exemtion toward something else, thats why im reaffirming

[drock1985]

bump

[tcreegan]

Hi again drock,

Seriously, the best way to do this is to go to the credit union, fill out the forms and sign them there, then have them file it with the court. You are going to have to go to them sometime anyhow, they have to review and sign too.

And, B240 is not written up for a pro-se credit union reaffirmation. But forms that are in "substantial conformity" and acceptable to the local court can be used. I'll bet dollars to doughnuts your credit union has a much easier form to use.

But if you really want to do it yourself....check your courts website for local rules, many courts use their own version of B240 and B27

I would not check either presumption box but put "not applicable-credit union" under or to the side.

Then I would explain the logic of almost paid off on the second half of (C)(2)

Good luck w/ it...

Tom in Colo